In this sharpshooting article, we help you take precise aim at your sales target.
Market research is the process of systematic gathering, recording and analysing of data about customers, competitors and the market. It helps create a business plan, launch a new product or service, fine tune existing products and expand into new markets etc.
It can be also be used to determine which portion of the population will purchase the product or service, based on age, gender, location and income level. It can be establish the characteristic of your target market.
With proper market research, companies can make better business decisions about the development and marketing of new products. Market research represents the voice of the consumer in a company.This is vital to ensure that your business idea is viable.
Lack of Adequate Market Research
In an effort to get a business plan together hastily, many business owners do not double-check and substantiate their claims.So it is your responsibility to ensure your research is accurate, up-to-date, and verifiable.
A common misconception is that an entrepreneur who fails, lacks sufficient funding or did not put the right team in place.
But,one of the leading causes of the collapse of a small business is its failure to determine earlier on if the market is sufficient to support the business. Many entrepreneurs rely simply on instinct and start their own businesses without verifying whether there is demand for the product or service – it’s easy to be overwhelmed by a new business idea and set up a business without testing its viability.Only after they have infused capital, time and effort in their start-up do they suddenly learn of the insufficient demand.Till then,it would have been too late.
Accurate market data will help prevent such “over-optimistic forecasts”.
A Solution to Remedy the Lack of Capital
If you are short of capital and cannot afford a full market research, you can talk to existing businesses in the same industry, suppliers, trade associations, and even potential customers to check the market for your business.The important thing is to gather as much information as you can about your market.